morale - The overall confidence, spirit, or mood of a person or group, especially during challenging times, with a level of enthusiasm and dedication.
Because everyone blamed her for whatever went wrong in the department, this led to her having low employee morale.
reconcile - To bring two or more people or groups into a state of harmony or understanding after a disagreement or conflict.
After a long argument, they managed to reconcile their differences and rebuild their relationship, realizing how much they valued each other.